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New figures published today show that $11.6bn (â¬9.4bn) was invested in hedge funds between April and June this year, less than half the amount invested in the previous three months.

Tremont Capital Management, the data provider which published the figures, said this was the slowest growth since the last three months of 2001.

The figures confirm a trend identified last week by Hedge Fund Research, a rival data provider, which said investors placed $10.9bn with hedge funds between April and June, sharply down on the $27.3bn invested in the first three months of the year.

Both Tremont and Hedge Fund Research linked the slowdown to a recent spell of poor investment performance. Hedge funds on average generated net returns of 1% to 2% in the first six months of 2005, according to data providers.

Bob Schulman, chief executive of Tremont Capital Management, said growth in the second quarter of the year was a return to normality after two years of big expansion.